Workforce Wonders

IQ

4TH QUARTER 2017

COMMUNITY

A Sunny Future— A Leech Lake solar project powers high-paying jobs.

Pg. 10

ECONOMY

Deciphering the Data— Get the scoop on Central Minnesota’s economy.

Pg. 12

PHILANTHROPY

’Tis the Season— Make the most of year-end giving.

Pg. 48

WORKFORCE WONDERS Creativity and collaboration keep Central Minnesota’s labor force strong.

Pg. 16

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IQ

Initiative Foundation Quarterly 4TH QUARTER 2017

Contents FEATURES

DEPARTMENTS

16

6

25 30

38

Workforce Wonders

Creativity and collaboration keep Central Minnesota’s job market strong.

Youth Say Yes!

A popular school club helps kids see the promise of environmental science.

Building a Future

How the region’s manufacturers are developing a well-stocked pool of job applicants.

A Fresh Start

Initiatives:

Regional Highlights

Get the latest economic and community development highlights from the 14-county area.

10

Community:

A Sunny Future

A Leech Lake solar project powers high-paying jobs.

12

Economy:

Deciphering the Data

Get the scoop on Central Minnesota’s economy.

48

Co-ops bring a bounty of local food to Central Minnesota tables.

Philanthropy:

’Tis the Season

How to make the most of year-end giving.

50

Home made:

Milk & Honey Ciders

Brewing success in St. Joseph.

52

Where’s IQ?

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Master Planning

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Programming

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Feasibility Studies

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Site Analysis

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Design

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Renovation

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New Construction

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3

Dear Friends, As I began my transition to the Initiative Foundation a year ago, I was an outsider looking in with admiration for the new Initiators Fellowship, which provides intensive assistance to some of Central Minnesota most talented social entrepreneurs.

I was just starting to understand how our Thriving Communities Initiative (TCI) develops new leaders and forges local consensus around the projects that make our hometowns stronger.

I was taking note as I repeatedly passed by the many businesses we had helped to finance via our gap lending program.

And as a recreational cyclist, I was excited to learn about the Foundation’s willingness to take risks, funding early-stage feasibility studies for projects that went on to become big-time economic development drivers like the Cuyuna Lakes Mountain Bike Trails in Crow Wing County.

These days, I’m lucky to have a year of wonderful experiences under my belt. I’ve witnessed firsthand the dazzling talents of our Initiators Fellows. I’ve enjoyed the buzz of a bustling downtown where TCI participants moved their community toward a more prosperous future.

I’ve toasted my wife with a cider crafted by one of our loan partners, Milk and Honey Ciders (see p. 50). And I’ve survived my first mountain bike race at Cuyuna—with only one minor crash!

VOLUME 26, 4TH QUARTER 2017

Initiative Foundation President | Matt Varilek VP, External Relations | Carrie Tripp Marketing & Communications Manager | Bob McClintick Editorial Managing Editor | Elizabeth Foy Larsen Writer | Laura Billings Coleman Writer | Lynette Lamb Writer | Gene Rebeck Writer | John Reinan Writer | Andy Steiner Writer | Maria Surma Manka Art Art Director | Photographer Photographer Photographer

Teresa Lund | John Linn | Paul Middlestaedt | Michael Schoenecker

Advertising Advertising Director | Brian Lehman Advertising Manager | Ashly Gilson Advertising Manager | Lois Head Advertiser Services | Julie Engelmeyer

President Matt Varilek tests his mountain biking mettle at the Teravail Oremageddon race at the Cuyuna Lakes Mountain Bike Trails near Ironton.

Subscriptions Email info@ifound.org to subscribe or to make subscription inquiries.

In this edition of IQ Magazine you’ll find more great stories about important work in the region, much of it focused on workforce challenges and solutions.

These stories paint a vibrant picture of our region, and we’re blessed to have a role in helping to shape Central Minnesota’s future.

Enjoy the magazine.

Matt Varilek PRESIDENT

405 First Street SE Little Falls, MN 56345 (320) 632-9255 | ifound.org

IQ Magazine unlocks the power of Minnesota leaders to understand and take action on regional issues.

RANGEDELIVERS.COM Printed at Range, a Deluxe Company with Soy-Based Ink on Recycled Paper

4 Initiative Foundation Quarterly ifound.org



Melissa Hesch, Eagle View Elementary Principal (left), Chris Lindholm, Pequot Lakes Superintendent (middle), and Mike O’Neil, Pequot Lakes Middle School Principal (right)

LEADERS WORTH FOLLOWING IN CENTRAL MN “The challenge for any leader is building common language into a system and making it work,” says Pequot Lakes Superintendent Chris Lindholm. “Leadership training has provided us safe vocabulary to have hard conversations…it creates synergy.”

GiANT Worldwide partners with an organization, giving them a framework and tools for effective communication. With ongoing coaching and workshops, participants learn more about themselves – their strengths and opportunities – and how to become leaders worth following.

Learn more about GiANT Worldwide and NJPA at njpa.co/giant.

NJPAcoop.org Shared Services • Professional Development • Cooperative Purchasing • Risk Management • Government Services

Initiatives

WADENA TODD

CROW WING

MORRISON

MILLE LACS

PINE

BENTON STEARNS

SHERBURNE

ISANTI

CHISAGO

Regional Investment Highlights

CASS

KANABEC

IQ

WRIGHT

WESTERN MORRISON COUNTY | Wine, Beer and Food for a Cause at Cheers to Morrison County More than $22,300 was raised on Sept. 16 to grow the Morrison County Area Foundation (MCAF) endowment and support its grantmaking efforts during Cheers to Morrison County, a wine, beer and food-sampling event at Camp Ripley. An Initiative Foundation Partner Fund, MCAF drew a crowd of 600-plus for its annual fundraiser. Proceeds help MCAF award grants each year to enhance the quality of life in Morrison County.

TODD COUNTY | Community Dives Into Staples-area Housing Shortage An increase in jobs and a lack of rental housing will be addressed by the Central Minnesota Housing Partnership (CMHP) and members of the Staples area Resilient Region group. With support from an Initiative Foundation grant, the group will lead community meetings and surveys to gather information from potential renters to address a housing shortage, especially for those with mental health disorders.

WADENA COUNTY | Training At-Risk Students for High-Demand Field

MORRISON: The Hangar at Camp Ripley was hopping on Sept. 16 for the Morrison County Area Foundation’s fourth annual Cheers to Morrison County benefit.

The Minnesota Department of Employment and Economic Development projects a high demand for computer programmers over the next decade. With help from an Initiative Foundation grant, the Cloverleaf Youth Partnership in Wadena is working to help meet the demand by providing programming classes at the local Cyber Café. The classes serve at-risk and underprivileged youth.

NORTHERN CASS COUNTY | Clients, Volunteers Up at Faith in Action Faith in Action is reaching a larger audience of clients and volunteers, thanks to Initiative Foundation grant support that has helped create clear, concise information on the nonprofit’s website and brochures. Since implementing the changes, Faith in Action has helped 46 new individuals and trained nearly two dozen new volunteers. Visit faithinactioncass.com to learn more.

CROW WING COUNTY | Breakfast Serves as Bridge to Manufacturing Celebration Manufacturing was celebrated and money was raised at the Oct. 5 “Good Morning, Manufacturing!” breakfast in Brainerd. The Bridges Manufacturing Workforce Development Fund, an Initiative Foundation Partner Fund, supports post-secondary education scholarships to attract students to manufacturing careers primarily in Cass, Crow Wing, Morrison, Todd and Wadena counties.

MILLE LACS COUNTY | Grant Helps Boaters Stop the Spread of Aquatic Invasive Species

MILLE LACS: User-operated, waterless Clean, Dry and Dispose (CD3) Cleaning Stations are being installed throughout Minnesota to reduce the spread of aquatic invasive species.

6 Initiative Foundation Quarterly ifound.org

Clean, Drain, Dry and Dispose (CD3) Cleaning Stations, produced in Princeton, have been installed throughout Minnesota this summer: four stations are in the metro area and another is on Pike Lake near Duluth. Supported by an Initiative Foundation grant as part of the Aquatic Invasive Species pilot program, and in partnership with the Lessard-Sams Outdoor Heritage Council, the solar-powered, user-operated machines are designed to reduce the spread of aquatic invasive species. Watch a video to learn more: cd3station.com.

“ Without Dan Bullert’s advocacy and the Initiative Foundation’s services, I wouldn’t be in business.”

– Loan client Jeremy Voss, The Fish House Coffee Shop, Mora

SOUTHERN BENTON COUNTY | Compass Program Makes Inroads With At-Risk Youth Now in its second year, the Compass Program to help at-risk youth in the Sauk Rapids-Rice school district is making positive inroads. Nearly 30 students participated in the program last year, where they met with a mentor, visited St. Cloud Community and Technical College and received guidance to help them stay in school. The effort is supported by a three-year Youthprise and Social Innovation Fund grant administered by the Initiative Foundation.

SHERBURNE COUNTY | Grant Energizes Transition Assistance in Sherburne County A $200,000 grant from The McKnight Foundation will ease the transition as Xcel Energy retires two Sherco coal-fired generators during the next decade. The move could eliminate up to 200 jobs and undercut the local tax base. The McKnight grant will support a Thriving Communities Initiative program to unite voices and identify ways forward. Plans already are in place to expand an industrial park and upgrade a rail spur to support new businesses.

STEARNS COUNTY | Your Friendly Neighborhood COP House Opens in St. Cloud The Richard C. Wilson Community OutPost, or COP House, had its grand opening in August on St. Cloud’s south side. The site is modeled after the first COP House in Racine, Wis., and serves as a home base where community-oriented policing can be used to improve troubled neighborhoods.

The initial effort was supported by an Initiative Foundation grant.

STEARNS: The Community OutPost in St. Cloud is a new model for community-oriented policing.

WRIGHT COUNTY | Community Action VISTAs Help Serve More People, More Food The number of clients served and the quantity of food distributed is soaring at Wright County Community Action (WCA) in Maple Lake, thanks to the efforts of Volunteers in Service to America (VISTA) service member Amy Kortisses and her team. WCA clients have increased by 67 percent, and food distribution is up by more than 30,000 pounds since the Initiative Foundation-supported project got under way a year ago.

EASTERN

CHISAGO COUNTY | Grant Helps Deliver High-Speed Internet to Underserved Area High-speed internet is coming to part of Sunrise Township, east of North Branch, thanks to a Minnesota Department of Employment and Economic Development (DEED) broadband grant. Township and local government officials partnered with DEED and CenturyLink to bring broadband to nearly 600 homes and a major manufacturing business. A longtime supporter of broadband access, the Initiative Foundation sponsored the Blandin Foundation’s October Border to Border Broadband Conference at Madden’s Resort.

ISANTI COUNTY | New Partner Fund to Support Braham Students Braham community members are rallying around a new cause: a fund that will support local students and broaden educational opportunities. Members of the Braham Area Education Foundation, a new Initiative Foundation Partner Fund, are working to create a permanent source of support for local students. All donations up to a total of $5,000 have been matched by Aurelis Manufacturing in Braham.

KANABEC COUNTY | Nonprofit Gets Branding Boost to Continue Good Works Pine Habilitation and Supported Employment, Inc., a recent graduate of the Foundation’s Financial Resiliency through Social Enterprise 2.0 program, is streamlining branding and operations for three for-profit ventures: a furniture store, a handcrafted barnwood accessories store and the Good Works Thrift Store in Mora. These mission-supported ventures provide employment opportunities for adults with disabilities while generating organizational income.

KANABEC: Mora’s Good Works Thrift Store recently received a boost thanks to the Foundation’s Financial Resiliency through Social Enterprise 2.0 program.

PINE COUNTY | Mental Health Forum Helps Break the Stigma An October mental health forum at Grand Casino, Hinckley, helped attendees learn where and how to access resources, which is often cited as a barrier to community growth and well-being. The forum, supported by an Initiative Foundation grant in partnership with the Mille Lacs Band of Ojibwe, Pine County Health and Human Services and the University of Minnesota College of Pharmacy, included speakers and resources on mental health issues.

4TH QUARTER 2017

7

OUR COMMUNITY, OUR COMMITMENT TO GIVING

For thirteen years, the Anderson Brothers Family Foundation has supported organizations in our community that focus on families and children in need, environmental protection, and economic development. In partnership with the Initiative Foundation, our foundation provides summer camping experiences for children with autism, skin diseases, heart disease, down syndrome, and families affected by AIDS at Camp Knutson in Crosslake. We care, because we live here, too.

ANDERSON BROTHERS Family Fund

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SKILL-BUILDING: David Headbird (second from left) was one of three Leech Lake Tribal College students supported by an Initiative Foundation construction trades grant. Headbird, pictured with his family and Initiative Foundation staff, helped to install the solar array.

A Sunny Future A Leech Lake solar project provides low-cost power and training for high-paying jobs.

By John Reinan

A first-of-its-kind project on the Leech Lake Reservation is demonstrating the power of solar energy, both as an energy source and as an entry point for young workers into a fast-growing sector of Minnesota’s economy.

This fall, the Leech Lake Band of Ojibwe collaborated with Backus-based Rural Renewable Energy Alliance (RREAL) to complete a 200-kilowatt community solar grid. Power generated from the grid will be sold back to electrical utilities. In turn, the money from those sales—expected to be around $20,000 a year—will be earmarked for an assistance fund to help low-income residents with their power bills.

It’s the first community solar project on any reservation in the United States that’s dedicated to low-income energy assistance. But what may turn out to be even more important is the job-skills training the project is providing to young workers from the area.

The Initiative Foundation provided a grant to support training for three students at Leech Lake Tribal College in Cass Lake. Each went on to work on the solar grid installation. All three students earned an entry-level professional certification, which allowed them to work on 10 Initiative Foundation Quarterly ifound.org

solar installations under the supervision of a master electrician. And all three have continued to work for the Rural Renewable Energy Alliance (RREAL) after the completion of the Leech Lake project.

“Every community in Minnesota is dealing with a skilled worker shortage right now,” said Don Hickman, Initiative Foundation vice president for community and workforce development. “These are the first three graduates of Leech Lake Tribal College to get this certification. There is a great demand for their skill set.”

Exploding Opportunities

Indeed, the alternative energy sector in Minnesota is booming.

Renewable energy jobs, most of which are in wind and solar, grew by 16 percent to around 6,200 in Minnesota from 2015 to 2016, according to a recent study by Clean Energy Economy Minnesota. Clean-energy jobs of all kinds in the state—including bioenergy, wind power, solar energy, smart grid and energy efficiency initiatives—total more than 57,000. With a growth rate of 5.3 percent, clean energy is the fastest growing of the 11 major industrial sectors tracked by the state Department of Employment and Economic Development.

ENERGIZED: Leech Lake Tribal College interns Anthony Fair and David Headbird put their skills to work on the solar array.

TEAMWORK: The Rural Renewable Energy Alliance team celebrates the completion of the 200-kilowatt array.

“ Job prospects in solar energy are immense, vast, and exploding.”

Renewable energy “is not something that is on the periphery anymore,” said Rochelle “Rocky” Carpenter, chair of the tribal college’s Career and Technical Education Department. “There’s such a trade shortage right now. We are getting bombarded by companies that are seeking our students.”

The college is getting national recognition for the quality of its programs. This summer, Leech Lake was rated No. 1 in Wallet Hub’s annual survey of more than 700 two-year schools across the country.

“To watch this rapidly maturing institution really gives me hope,” said Hickman, noting that the college primarily serves an area with a historic unemployment rate of 40 percent. “It is opening pathways to the underserved, the underemployed, the undercredentialed and helping them become more valuable as employees.”

The long-term outlook for solar jobs is “immense, vast, exploding,” said Edens, director of RREAL, which oversaw the Leech Lake solar installation. “The future of solar is rosy. These are skilled tradespeople who can expect to make a better-than-average living.

“We are quite interested in the workforce development aspect of the Leech Lake solar project,” he said. “It is more than an ancillary benefit.”

In fact, Edens says the clean energy workforce needs to become much more inclusive. “So it’s been a real pleasure to provide the graduates of the Leech Lake College program with meaningful opportunities.”

Sustainable Future

The community solar grid is just one of many projects the Leech Lake Band has supported in the interest of sustainable living, said Brandy Toft, the band’s deputy environmental director. Others include cultivation of local food, energy conservation and wind power feasibility studies.

“We’re training our younger generation to be self-reliant,” she said. “We can maintain these things and build more within our community. And that is a strong statement that we’re being sustainable from within.” The solar project, Toft said, “is about cutting that divide,

where you can only be renewable and sustainable if you have money.”

The tribal college’s technical programs strive to introduce students to housing as an interrelated system. “We try to develop skills relating to the whole house and the site,” said Carpenter. “I felt that a lot of the trades were being segregated out. A plumber wasn’t really encouraged to learn how the whole building was set up. Back in the day, you would know a little about the whole house system, and I felt that was going away.”

That broad knowledge base can include simple things, such as how placing a house on a south-facing footing can bring immense benefits in energy efficiency. “Native Americans for all time have positioned their buildings in accordance with the sun,” said Carpenter.

“There are all these underlying things that have been lost because we’re stuck in these cookie-cutter houses.”

One potential drawback for Leech Lake grads: As things stand now in Minnesota, many of the solar projects are concentrated in the southern third of the state. “We need to address the fact that our students may need to leave the area if they really want to pursue a career,” Carpenter said. “But as prices (for installations) come down and the market grows, there will be more jobs up here.” And students armed with solar skills will be well positioned to create local, off-grid systems no matter where they are.

That’s what Hickman is hoping for.

“The more people we can get into these high-demand, high-pay jobs, the more we can reward the worker and meet a community need as well,” he said. “Communities need to make their own decisions on what energy makes sense for them. And Leech Lake said, ‘This makes sense for us.’”

The community solar grid is the first step toward what promises to be an exciting future for the college and the community. “Check back after a year,” said Carpenter. “The landscape is changing so fast.

There are so many projects being developed, groups being formed— it’s just going to take off.”

4TH QUARTER 2017

11

Economy

INSIGHTS: Susan Brower (left), pictured with Laura Kalambokidis (right) said, “There are still many people who could be enticed to return—or to stay—in the labor force.”

Deciphering the Data Minnesota’s state economist and demographer offer strategies and insights on how to keep the region’s economy strong.

By Gene Rebeck | Photography by John Linn

Some things never change: Minnesota remains a hardworking state with a diverse economy that once again has proven its resilience following a recession. At the same time, the state is changing—and fast. According to the Minnesota State Demographic Center: • The state’s total population is estimated to exceed 6 million by 2032, and will grow to nearly 6.8 million by 2070.

• People of color are projected to make up 25 percent of the state’s population by 2035, compared to 14 percent in 2005.

• The under-18 population will grow modestly, gaining about 32,000 between 2015 and 2035. Meanwhile, the state’s 65-plus population will grow much more rapidly, adding more than half a million people during those same years. By 2035, the 65-plus age group is expected to eclipse the under-18 population for the first time in Minnesota’s history.

Where does Central Minnesota fit into the complex story these data tell? Laura Kalambokidis, Minnesota’s state economist, and Susan Brower, state demographer, shared their insights and interpretations.

Q:

What are Central Minnesota’s

biggest economic opportunities?

LK: There’s population growth. And having a range of industries to choose from for jobs is an asset in the area. It’s not dependent on any one industry.

SB: One of the biggest economic opportunities that lies ahead is how well we incorporate every last person in a rapidly changing economy that is increasingly reliant on technology. This has been our biggest opportunity for some time, perhaps. But it seems to me that our demographics are now bringing us to a new critical point in our history in which there won’t be any room to leave anyone behind.

Our projections show the workforce in the Central Minnesota Planning Region is expected to grow modestly between 2015 and 2025.

After that, we expect the number of workers will decline until at least 2030. Many other regions in the state will see a decline in the number of workers beginning immediately.

CONTINUED ON PAGE 14

12 Initiative Foundation Quarterly ifound.org

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economy, continued from page 12

Q:

Are there positive surprises that you didn’t expect when it comes to the region’s economy?

LK: I was surprised to see that Central Minnesota has a slightly higher labor force participation rate than the rest of the state. That speaks highly of the area’s ability to use its labor pool. Hard-working people live in Central Minnesota. And businesses are creating jobs that people want.

SB: We have seen more labor force participation by young people than we had anticipated. But I do have concerns about this trend in the longer term.

Q:

How can the region address the worker shortage?

LK: It would be valuable for Central Minnesota to “attract back” young people from the region who leave for their higher education.

Every community needs to continue to be a place that people choose to live in and to start businesses in. So communities need to identify the assets that contribute to quality of life, then invest in those assets.

SB: Be willing to let go of the old way of doing things. There are still many people who could be enticed to return—or to stay—in the labor force if salaries, benefits, work schedules and educational opportunities are flexible enough to meet their needs.

Q:

e have a lot of people retiring.

W How does that affect the region?

LK: There’s a smaller share of the workforce that has defined benefit pensions now. So they may be working longer to make sure they have enough money saved up. I see that as an opportunity for employers to address worker shortages. Employers that get creative with scheduling, technology and telecommuting may be able to retain those older workers longer.

SB: At age 65, Minnesotans can expect on average to live another 20 years. Fifteen of those on average will be healthy, disability-free years.

That’s a lot of time to recreate and to be productive inside and outside the formal labor market. The region benefits to the extent that older adults remain engaged in productive work—whether it be tutoring or mentoring young people informally, or working on a part-time or contract basis.

Q:

What kind of degrees should students pursue?

LK: In Central Minnesota—and across the state—health care is one of the industries that is going to continue to grow, and it has a large number of vacancies now. What’s interesting about health care is that there is a wide range of possible ways to participate. There are jobs that require a great deal of education, like a doctor or a nurse. And there are

14 Initiative Foundation Quarterly ifound.org

jobs that don’t require as much education, like personal care assistants.

Then there are jobs in the middle that may require some technical training—maybe a four-year degree, maybe not.

Manufacturing is another area that has job vacancies now in Central Minnesota. Those jobs also have a range of ways to get in— without a whole lot of training, or some technical training, or more education for management-type jobs.

SB: Focus on gaining technical skills, because they will be more transferable as the economy changes, or as what you love to do changes. The Minnesota Department of Employment and Economic Development has some great online tools showing the industries and occupations where the most growth is likely to occur, where the supply of workers is lagging, and where earnings potential is high. Whether students choose two-year or four-year degrees will depend on the circumstances of the individual. But we shouldn’t think of education as a one-time experience that we undertake in our late teens to early 20s and never return to.

Q:

What about wages? Some data show they aren’t rising.

LK: Actually, the wage growth in Minnesota exceeds the wage growth in the United States. The labor market is tighter in Minnesota than in the nation as a whole, so I think we’re seeing wage growth sooner. That’s what you’d expect from a supply-anddemand point of view.

Also, when you have a high demand for labor and supply growth is slow, then businesses that are trying to fill positions might turn to technology in order for the people that they do have to be able to produce the same amount. When worker productivity increases, wages go up as well. We’re already seeing some of that in Minnesota.

Q:

I mmigration to Central Minnesota has offset other population declines. Has that trend changed in recent months?

SB: We don’t yet have the census data that would allow us to see how immigration has changed in recent months, but we do know from early administrative records that Minnesota has seen a decline in the number of refugee arrivals. What I can say with certainty is, eventually, Central Minnesota will need immigrants to grow. It’s just how the math works out. If immigrants do not find a welcome home in the communities of Central Minnesota, the population in the region will eventually decline, and that could have consequences for the long-term economic vitality of the region.

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Linn

by J ohn | Ph otog raph y

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open in colla gs than bora w tion orkers t can keep o fill them Cen tral M, creativ inne ity and sota ’s lab or fo rce s tron

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Rising wages, rebounding household incomes, and the resurgence of the once

endangered signing bonus are positive signs Minnesota has long since recovered

With more

job

from the worst of the recession when there were more than 12 job seekers for every

available opening.

But for business owners who still need proof the tide has turned, try hanging out a Help Wanted sign.

“That’s when employers suddenly realize there’s no line outside the door anymore,” said regional analyst Luke Greiner, who studies trends in Central and Southwest Minnesota for the Department of Employment and Economic Development (DEED). Over the last two years, he’s been on the receiving end of increasingly anxious calls from employers in the region, many wondering why they’re not getting the anticipated response to job openings. “I have to tell them it’s not their fault, it’s not anything their HR department is doing wrong, and it’s not because anyone is bad-mouthing their companies. It’s just that a lot of the great applicants that might have been waiting in line five or six years ago are already working. That’s why no one’s applying.”

Not only has the economy rebounded, the first wave of Baby Boomers has begun retiring at such a rate—10,000 every day across the country, according the Social Security administration—that there aren’t enough Gen X and

4TH QUARTER 2017

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SUE HILGART: “If you can find a way to make the work more accessible, it’s a great way to tap the potential we have right in front of us.”

Millennial workers to replace them in the pipeline. It’s a scenario Minnesota policy makers have been seeing on the horizon for nearly two decades. As state demographer Susan Brower points out, the recession “was such an earth-shattering event for so many people that thinking about a labor shortage seemed absurd.” Preparing for the day when available jobs outnumber available workers seemed “like something so far off in the future,” she said. “But the fact is, it’s happening now.”

The pace of retirements has been accelerated by the fact that Baby Boomers who put off their retirement plans when their 401(k) balances plummeted during the recession are retiring now that those retirement accounts have bounced back. These “deferred retirees” are speeding the shrinkage at the top end of the workforce.

If current trends continue, mid-2018 will mark the turning point where there will be more jobs in the state than people looking for them—a situation that’s already happening in some sectors, including healthcare, manufacturing and information-technology.

The emerging labor force shortage, combined with a recent change in seasonal immigrant visas, created a serious crunch in the Brainerd Lakes area this summer, forcing big resorts to purchase billboards and boost their ads on Facebook to fill seasonal positions. Even the region’s largest employer, CentraCare, with its 10,000 employees, started a youth employment summer camp for 14- to 17-year-olds, aimed at growing a local workforce that can fill some of the health system’s estimated 800 current job openings.

Don Hickman, Initiative Foundation vice president for community and workforce development, said that these types of programs are only the start of the outside-the-box recruiting efforts likely to emerge as employers get creative about coping with a 18 Initiative Foundation Quarterly ifound.org

predicted shortage of 100,000 workers by 2020—a dip that could last for two decades, according to estimates by Greater MSP, the Minneapolis and St. Paul regional development partnership. “I haven’t talked to a single business owner right now in any sector that isn’t telling me they would be expanding if they could just find the right folks for the jobs,” Hickman said. “We’re in this workforce pinch for at least another decade, which is why I’m convinced that companies that figure out early how to fill the gaps are going to thrive earlier and longer during this dip in population.”

Here are three examples of organizations, all of which have received funding from the Initiative Foundation, whose innovative approaches to workforce development are already paying big dividends.

GIVING SIDELINED WORKERS A SECOND LOOK

This demographic shift isn’t all bad news—for many workers, it could be just the break they’ve been waiting for.

“We’re seeing rising turnover rates in every age group, which is a reflection of people feeling confident and comfortable about changing jobs, earning more and moving upward,” said Greiner, who adds that “people who might have been passed over when the labor market was tighter are also going to be getting the second look they deserve.”

That’s especially true for people with disabilities—a population that’s been challenged by unemployment rates of 10.5 percent, more than double that of workers who aren’t disabled.

“Unfortunately, people with disabilities are often the last hired, but they have so much potential,” said Carol Anderson, executive director for Community Development Morrison County and chair of the Rural Minnesota Concentrated Employment Program (CEP),

A

lot of the great applicants that might have been waiting in line five or six years ago are already working. That’s why no one’s applying.

”

which has been helping to move workers with disabilities off state and federal benefits programs and back into employment through a voluntary Social Security program called “Ticket to Work.”

“It is CEP’s underlying philosophy that, in order to be successful, people need to work. It’s just the key to everything,” said Dan Wenner, executive director of Rural Minnesota CEP, who points out that many of the more than 185,000 Minnesotans who receive disability benefits due to an accident, injury, or qualifying medical or mental health diagnosis have the skills and motivation to earn more through employment. Yet the risk of losing benefits—or having to re-qualify if a job doesn’t work out—can be a powerful disincentive to pursuing even part-time employment.

Ticket to Work offers a simple fix, making it possible for Minnesota’s current 1,028 current “ticket holders” to keep their benefits as they secure first jobs or go back to work, funding that eventually phases out as they make a successful transition toward financial independence. If the placement doesn’t pan out, ticket holders don’t have to wait for disability benefits to resume, ensuring that their basic financial needs are covered. The program also accounts for the fact that workers with disabilities may need to come and go from the workforce, depending on medical treatments, injuries, or other issues.

“It really lowers the risk of going back to work and gives people more confidence about taking the leap,” according to Sue Hilgart, program manager at the Brainerd WorkForce Center who said the self-selecting program, funded in part by a community grant from the Initiative Foundation, has attracted some highly motivated individuals. For instance, one recent ticket holder who was disabled due to an organ transplant was able retrain for a new career during

recovery, relying on free support from the Ticket to Work employment network to plan ahead for the accommodations necessary to rejoin the workforce. Based on recent results, Wenner estimates that three in four Ticket to Work participants will make a successful transition to work, elevating their standard of living far beyond what they had been receiving in standard benefits (roughly $735 a month for those who qualify for Supplemental Security Insurance, or about $1,200 a month for individuals who receive Social Security Disability Insurance). In fact, a recent DEED report focused on workforce supports for people with visual impairments found that those who successfully closed their cases with the State Services for the Blind earned an average full-time rate of $20 or more.

“We’re talking about a population that wants to work, that wants to contribute, but maybe they don’t have the stamina to work fulltime, or the capacity to do every task that you want to check on your to-do list,” said Hilgart, who makes a point of urging local employers to consider ways they could restructure their next job posting with flexible hours and other accommodations that could attract one of the 10 ticket holders she’s currently working with in Brainerd. “If you can find a way to make the work more accessible, it’s a great way to tap the potential we have right in front of us.”

HELPING WORKERS REBUILD THEIR RESUMES

Job openings in the construction trades are as high as they’ve been in a decade. There’s also a workforce shortage that’s pushing up construction costs, prolonging projects and contributing to a statewide housing shortage.

“We work with so many contractors out there who just can’t keep up with the demand, and we started wondering if there was more we

4TH QUARTER 2017

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Working Wonder CONTINUED FROM PAGE 19

C

WIN-WIN: Domanic Richardson (left) is just one of the beneficiaries of a new partnership between Central Minnesota Adult & Teen Challenge and Lakes Area Habitat for Humanity. Pictured with Domanic are Sam Anderson of Central Minnesota Adult & Teen Challenge and Kevin Pelkey of Lakes Area Habitat for Humanity.

ompanies that figure out early how to fill the gaps are going to thrive earlier and longer during this dip in population.

”

could do to help them connect to a great pool of people who are ready to jump in and learn,” said Kevin Pelkey, executive director for Lakes Area Habitat for Humanity. Impressed by the strong work ethic among the community service volunteers he sees from Central Minnesota Adult & Teen Challenge, a long-term treatment facility, Pelkey and Habitat for Humanity staff have been building a new partnership to help put more graduates on a path to full employment. “These guys have been great to work with, and they come ready to learn,” he said.

“Our biggest problem has been just trying to keep up with them.”

But getting hired again after a history of substance abuse requires extra support. “If you’ve been living with an addiction for any length of time, it’s likely that you’ll have an arrest or felony on your record that can be hard to overcome,” said center director Sam Anderson.

In fact, having a criminal record can cut a job candidate’s chances of getting called back by more than half, according to research from the

National Institute of Justice. The challenge of re-establishing credit, reliable transportation, a driver’s license and other job application requirements can be additional roadblocks to re-employment—and to recovery.

This summer, the two nonprofits launched a 90-day transitional employment partnership that allows promising new graduates of the year-long treatment program to work for Habitat for Humanity’s ReStore, earning an income from the donations-based home improvement center while getting established in sober housing.

But even before the program’s first recruit, Domanic Richardson, completed the program in late September, he’d already landed a job with a local construction firm. The glowing reference from Habitat for Humanity didn’t hurt.

“It doesn’t seem like my past will be a problem,” said Richardson, 33, who worried that the year he spent at Adult & Teen Challenge CONTINUED ON PAGE 22

20 Initiative Foundation Quarterly ifound.org

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W

GREAT GAINS: Through the CareerONE Coleman program, students received adult education completion certificates and advanced their opportunities to work and earn a better income.

e have so many companies that need the workforce, and strong young people who need the work, that we just need to make the connection. could be a red flag to potential employers. Instead, he said, being transparent about his past troubles may have helped. “I’ve heard that some companies, if they hear you’re a graduate of a longterm program, they like hiring you because they know you’ve been committed to recovering, and that you’re ready to turn your life around.”

With more graduates now in the pipeline to complete the 90-day partnership, Pelkey believes the program is a way that nonprofits can give back to the construction trades that donate their time and labor, while giving a second chance to good workers who are ready to rebuild their lives. “This program can give these guys some confidence, some cash, and a connection to a good paying job, so it’s already working the way we want it to,” he said.

”

FAST-TRACKING NEW AMERICANS INTO THE WORKFORCE

Though some corners of the state may struggle to make economic gains in the decade ahead, the St. Cloud area is poised for growth thanks in large part to an influx of immigrants. While immigrants and refugees from East Africa have been an economic driver in the region for more than decade, finding ways to fast-track more recent arrivals into the workforce was the focus of CareerONE Coleman, a new on-the-job training pilot attracting attention from manufacturing firms and other employers around the region.

The impetus for the program was an urgent call to action last spring, as educators from District 742 began looking for ways to engage more than a dozen students from East Africa who were about to “age out” of the school system, well short of the graduation requirements needed to earn their high school diplomas. “We have CONTINUED ON PAGE 46

22 Initiative Foundation Quarterly ifound.org

FINDING COMMON GROUND Jama Alimad, founder of the Central Minnesota Community Empowerment Organization, has an eye for seeing where immigrant needs and business interests intersect.

When workers at the Coleman Co. plant in Sauk Rapids walked off the job last spring, Somali elder Jama Alimad saw the stand-off as an opportunity for conversation—not confrontation.

“I don’t face the problem with the eyes of the management. I don’t face the problem with the eyes of a union leader,” said Alimad, a member of a crossclan council of Somali leaders that’s been active in the St. Cloud area for more than a decade. “Instead, I face the problem with the eyes of the community, looking at the benefit the workforce gives to the company, and the benefit the company’s profits bring to the workers. We need each other. So I try to make a real connection between employer and the workers—that’s the secret to what I do.”

Finding the common ground that connects St. Cloud’s Somali community with the region’s economic priorities has been a personal and professional calling for Alimad—a former export business manager in his native Somalia—since he settled in St. Cloud in 2004. After retiring as an accountant in 2009, he founded a nonprofit, now called Central Minnesota Community Empowerment Organization, with the aim of increasing economic opportunities for immigrants and refugees. He does this, in part, by promoting the tremendous resilience and natural entrepreneurship of the region’s newest arrivals. As he told a recent audience at St. John’s University, “We lost a country that was a paradise, but I can assure you, it was not the end of the world. We can go anywhere and start over.”

As a fast-growing population of East African immigrants has encountered new challenges integrating into area schools, neighborhoods and workplaces, Alimad has turned his focus to mediation. In 2015, he worked with St. Cloud

State University and the Conflict Resolution Center to organize a series of mediation training and certification sessions for a cohort of Somali community leaders, empowering other elders to help resolve everything from marital discord to management tensions. “Jama reminds me of the parish priests I know,” said St. John’s University peace studies associate professor Ron Pagnucco, board chair of Central Minnesota Community Empowerment Organization. “He’s always on call, people come to his door with problems all times of the day or night and he actually takes the initiative to solve them.”

When the La Cruz Community Center lost its funding earlier this year, Alimad reached out to the center’s tutoring and legal aid partners and persuaded everyone to continue the work while Catholic Charities covered the utilities.

Alimad now serves as site manager for the center, which has served St. Cloud’s Somali community for nearly 20 years. It’s one of the many roles he plays in the community—all without pay.

“That’s where the trust comes from,” Alimad explained. “Most of our work is volunteer, and the community knows that, so they see this organization as their own, and know there’s no self-interest embedded in what I do.” In fact, he sees the important role elders play in problem-solving within St. Cloud’s large Somali community as the continuation of a long American tradition. “At one point in history, the Italians, the Irish, the Norwegians, they were doing the same thing we are doing now,” he said. “They were tied with the elders, bonded together, and working together to connect everyone in with the resources so they can make a contribution. That’s something that immigrants do very well—and that’s what keeps us going.”

I face the problem with the eyes of the community, looking at the benefit the workforce gives to the company, and the benefit the company’s profits bring to the workers. We need each other.

”

Photographs courtesy of St. Cloud Times, Aug. 16. © 2017 Gannett-Community Publishing. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this content without express written permission is prohibited.

4TH QUARTER 2017

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How a popular school club is helping kids across Central Minnesota see the promise of environmental science and make positive change in their schools and communities.

By Andy Steiner | Photography by Michael Schoenecker

One of the most popular extra-curricular activities at Royalton High School doesn’t involve dribbling a ball or memorizing the lyrics of a Broadway musical. Instead, students set to work creating eco-friendly classrooms and advocating for more opportunities in science, engineering, technology and math (STEM). These civicminded pursuits are organized by Royalton’s Tech Club/Youth Energy Summit (YES!). Founded by the students just over five years ago, the club is nearly 60 members strong, a big number when you consider that the average grade at Royalton High has 100 students.

“They asked me if they could create their own club,” said tech education teacher and YES! coach Marty Bratsch. “They told me they wanted an extracurricular activity that wasn’t sports-related. Instead, they wanted to do something that could have a larger impact on the community.”

Giving young people the ability to improve the vitality of their hometowns—and the world—is exactly what YES! is designed to do. The program, which was created in 2007 by Prairie Woods Environmental Learning Center and Southwest

4TH QUARTER 2017

23 25

PEDAL POWER: The YES! team from North Junior High in St. Cloud planted a 1.3-acre plot of pollinator prairie on their school grounds.

“Involvement with YES! helps students feel like they can be a force for positive change.”

Initiative Foundation, provides rural Minnesota students in grades 8-12 with opportunities to engage in experiential, hands-on projects that address key environmental opportunities and issues in their schools and communities.

STUDENT-DRIVEN

The idea behind YES! is to get young people excited about STEM-based careers through large-scale, student-driven initiatives that can have lasting environmental benefits.

“The program hits on so many notes that are of interest to us,” said Michelle Kiley, community development program manager at the Initiative Foundation. “It develops leaders. It focuses on communitybuilding and problem-solving skills. And it increases awareness of career, economic and entrepreneurial opportunities in the region.

Those are all wins as far as we’re concerned.”

While YES! projects have faculty and staff support, every initiative is developed 26 Initiative Foundation Quarterly ifound.org

and completed by students, which proponents say is a key to the program’s success. “We want the energy to come from the students,” said YES! program manager Shelli-Kae Foster. “When young people are passionate about something it is much more likely to get done.”

Students start out by doing an environmental assessment of their school and community to determine the greatest needs. They then come up with a timeline and get started on a project of their design that solves a need.

Many of these projects have had a positive impact on Central Minnesota communities. Last year, for example, a YES! team from North Junior High in St. Cloud planted a 1.3-acre plot of pollinator prairie on their school grounds. Today it also functions as an outdoor classroom, complete with benches made by the school’s shop class. The plot not only shores up the natural environment but also raises

awareness about threats to pollinators.

While YES! is all about giving kids the support they need to become environmental stewards, the program’s regional and statewide competitions also encourage participants to present their best work and be measured against their peers by teams of volunteer judges—experiences that bolster leadership, public speaking and even design skills.

At the start of the school year, YES! teams from across the state also gather for a Fall Summit, which this year was held at St. John’s University in Collegeville.

“It’s a time for kids to meet one another and get project ideas,” Foster said. “After the summit, they go back energized and come up with their projects for the year.”

YES! also sponsors winter workshops that help inspire students to move their projects forward. The regional winners then move to the state competition.

As they get under way with their work, team members collaborate to carefully CONTINUED ON PAGE 28

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YOUTH SAY YES! CONTINUED FROM PAGE 25

MARTY BRATSCH: “Students understand that they can put the work they did with YES! on their resumes.”

“Not only are students coming up with projects that will continue after they graduate from high school, YES! is also teaching 21st-century skills.” document their projects so they can present them at a series of online regional competitions that lead to the selection of a statewide champion. St. Cloud’s North Junior High won the 2017 Central Division.

This year’s state champ, Glencoe-Silver Lake, accepted its award in May at Target Field in Minneapolis, where the prize was announced during a Twins pregame show.

The school’s YES! team has been building and refurbishing supermileage cars for the past several years and participated in the Annual Supermileage Challenge at the Brainerd International Raceway last May. Supermileage teams compete to build vehicles that use the least amount of gas to go a set distance.

FUTURE LEADERS

While YES! teams members are sincerely interested in enhancing their communities through environmental improvements, they also learn about

opportunities that could make their futures even brighter. That’s because YES! offers field trips, miniature TED-style talks, and Q & A presentations where students learn about career, economic and entrepreneurial opportunities with an environmental focus.

It’s been a big draw at Royalton and other schools across Minnesota.

“These kids care about what they are doing,” Foster said. “Not only are they coming up with projects that matter and will continue after they graduate from high school, YES! is also teaching them 21st-century skills that they can bring into the workforce. They understand the value of that and they’re really interested in landing those jobs.”

At Royalton High School, “most of the students involved in this club are heading to college or a vocational school,” Bratsch said.

“They understand that there are careers out there that focus on the environment, and they’re trying to figure out how to get those

jobs. They also understand that they can put the work they did with YES! on their resumes and that they can say that they’ve been involved in environmental projects since they were in high school.”

At the fall summit, the kids hear from people who are on the ground working in careers that could interested them, according to West Central/Central YES! Coordinator Ali Dahmes. “Our winter workshops are based around getting students connected with those kinds of people.”

WIDER WORLD

Several years ago, members of Royalton’s YES! Team asked Bratsch if he’d make them a promise. “They asked if I’d consider taking some of them to Italy when they were seniors,” he said. “I told them that if we could find a way to tie a YES! project to manufacturing in Italy, I’d consider it.”

The group rose to Bratsch’s challenge and came up with a number of projects, including CONTINUED ON PAGE 44

28 Initiative Foundation Quarterly ifound.org

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Building A Future.

By Gene Rebeck | Photography by John Linn

30 Initiative Foundation Quarterly ifound.org

SKILLS IN ACTION:

Browerville High School students learn how to use the schoolâ&#x20AC;&#x2122;s plasma cutter.

Creative Solutions: To prevent staff burnout and provide training to future workers, Clow Stamping has been hiring Central Lakes College manufacturing students to work part-time.

Central Minnesota manufacturers are eager to grow.

Here’s how they are working to develop a well-stocked pool of job applicants.

As personnel manager for Clow Stamping, a Merrifield-based metal fabrication and stamping company, Twyla Flaws knows all too well how hard it is to find qualified manufacturing personnel. Clow Stamping, which is owned by Initiative Foundation Trustee Reggie Clow, employs about 450 and needs to hire more. How many? “I’m sure 25—easily,” Flaws said.

“We have an unemployment rate of 3.7 percent in this area,” Flaws said. “They say when you get below 5 percent, there just aren’t qualified people out there” to hire.

Flaws’ experience is a common challenge in the region and across Minnesota. The truth is that for many manufacturers, it can be a challenge to find the kind of skilled employees these businesses need to keep growing—or in some cases, to simply stay in place.

But manufacturers in Central Minnesota aren’t sitting on their hands. They’re talking directly to students, teachers and counselors, and letting them know about career opportunities in this rapidly changing field. They’re providing schools with the kind of advanced, computer-driven equipment used on their shop floors.

They’re also partnering with foundations, chambers of commerce, economic development organizations and other entities to reach out to students at high schools and colleges. Those partners have plenty of reasons to help. Manufacturing is crucial to Central Minnesota’s economic success. And they want it to stay that way.

State Leader

“The core manufacturing region in this state is the seven-county metro area, Sherburne County and Stearns County,” said Bob Kill, president and CEO of Enterprise Minnesota, a Minneapolis-based organization that provides services and information to the state’s manufacturers. In fact, Central Minnesota is “the strongest modern manufacturing area” in the state. While two-thirds of the approximately 7,500 manufacturers in the state have 20 employees or fewer, Stearns and Sherburne have “a higher percentage of companies above that,” according to Kill.

4TH QUARTER 2017

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MARKET-READY SKILLS: Paula and Chad Becker are using their Partner Fund at the Initiative Foundation to help Browerville-area students prepare for manufacturing careers.

How have Stearns and Sherburne built such a durable sector?

Partly, their success is due to the sheer diversity of the region’s manufacturers, which make products and components for sectors including agriculture, medical devices, motor vehicles and recreational and motor sports. The region’s strong transportation assets (freeways, railroads, access to the Twin Cities) make it easy for manufacturers to ship in components and ship out products, while being able to operate outside the crowded metro. What’s more, area manufacturers “can draw from all directions for possible employees and suppliers,” Kill said.

In short, it’s fertile soil for manufacturing. But there’s one element that’s in short supply. Enterprise Minnesota regularly surveys state manufacturers about their concerns and needs. Kill noted when those surveyed were asked about opening a new plant, 10 to 20 years ago their first concern was, “Are there incentives?

Today, it’s, ‘Is there a workforce in the community?’”

The workforce challenge, Kill observed, is rooted in many dynamics. Younger people, and those willing to switch careers, “just aren’t available.” That especially affects smaller communities.

What’s more, skills are moving more toward automation, science, technology and computers.

Meanwhile, a great many manufacturers are seeing opportunities to grow. Albany-based Wells Concrete, which has four production locations in the Upper Midwest and about 900 employees, has close to 60 positions open. “That’s clearly affecting their growth,” Kill said. “We hear that kind of problem all the time.”

Changing Field

Community colleges, the key source of trained manufacturing workers, “are doing as good of a job as they can,” Kill said. But they

often don’t have the number of applicants to produce more of the types of skilled employees that manufacturers need. In addition, the generally strong economy takes many potential manufacturing employees out of the college system pool because they have good enough jobs that they aren’t eager to look elsewhere.

The Initiative Foundation’s support efforts include a fund developed in partnership with the Brainerd Lakes Chamber of Commerce that’s designed to help students with limited means explore careers in manufacturing at community colleges in Central Minnesota. While Central Lakes can provide tuition assistance, the Initiative Foundation’s co-sponsored funds can help lowerincome manufacturing students purchase equipment, textbooks, even gas cards. The goal is to help these students in need “enter a highly remunerative field,” said Don Hickman, the Foundation’s vice president for community and workforce development. Wages in manufacturing start in the $13 to $16 range, Hickman said, and that figure “can quickly advance if you have the right work ethic.”

“Even during the recession, this is one sector that remained strong and is rapidly growing now,” Hickman added. “We have all kinds of advanced manufacturing in the region—some that rely more on international trade and others that are focused domestically. That gives us a good buffer for ups and downs in the marketplace.”

The Foundation also sponsors “manufacturing week” tours around the region in which students and their parents can visit area facilities and learn more about manufacturing environments and opportunities. “Many manufacturers are now intentionally recruiting a range of people who, historically, have not been as well represented in the workplace because there are so many job openings,” said Matt Varilek, the Initiative Foundation’s president and CEO. “I don’t know a manufacturer in the region that wouldn’t add employees if they could find people with the right set of skills.”

“ The colleges and the manufacturers are getting much more aggressive in trying to figure out how to work together in order to prepare the workforce of today and to make sure that the technology that’s needed is available within the school.”

While the Foundation can’t make grants directly to a for-profit entity, it can and does offer technical assistance grants to partner organizations. One such recipient is St. Cloud State University, which provides a variety of services for manufacturing, such as marketing assistance. In addition, the Initiative Foundation has CONTINUED ON PAGE 34

32 Initiative Foundation Quarterly ifound.org

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BUILDING A FUTURE CONTINUED FROM PAGE 32

helped schools across the region establish robotics clubs. These clubs can show students how STEM-related subjects and activities can be fun and challenging—and that, in turn, can open their minds to manufacturing careers.

That’s good news when you consider that manufacturing isn’t a sector that’s on young people’s radar. Partly that’s a perception problem: Manufacturing often conjures up images of dirty factories and back-breaking physical labor. But as Hickman noted, “Manufacturing is light years away from what it was when I was a boy. It tends to be almost entirely computer driven or navigated. It’s also a very clean profession now, and very safe.”

Opportunities Abound

One entity that has received a lot of credit and attention for its work in changing those perceptions is Bridges Career Academies and Workplace Connection in Brainerd, which helps K-12 and post-secondary schools prepare students to meet the requirements of regional employers. “It’s really trying to introduce young people at an early enough age so that they see alternatives to getting a fouryear degree,” Kill said. Many manufacturing skills can be earned with a two-year degrees or even a certificate.

Colleges also are reaching out to the next generation. “The colleges and the manufacturers are getting much more aggressive in trying to figure out how to work together in order to prepare the workforce of today and to make sure that the technology that’s needed is available within the school,” Kill said.

At the same time, colleges also are trying to access the current workforce as a source of manufacturing employees. Pine Technical College in Pine City offers on-site training programs for entrylevel workers who show interest in and aptitude for higher-level manufacturing skills, but who can’t take time away from work to go to classes. “It allows employers to hire people off the street and train

on the job,” said Pine Tech President Joe Mulford.

Then there’s Chad Becker, the CEO of Burnsville-based MetaFarms, Inc., which develops production-side software programs for farmers. Becker, who grew up in Browerville, said that he was “fortunate enough to get an education and be exposed to technology”—exposure he was able to convert into a career. “But not everybody has that chance.”

Last year, Becker and his wife established the Paula and Chad Becker Partner Fund, which is hosted by the Initiative Foundation. The fund plans to direct its grant awards to schools in the Browerville area to help acquire manufacturing equipment for enhanced and market-ready student skills development. In April, it made its first donation to the Browerville Public Schools system—a Logitrace system, which allows complex parts to be designed and laser-cut digitally. The Beckers hope to add to the fund in the future and to make a couple of “fairly sizable” donations per year.

Clow Stamping also has been getting creative. This past summer, it began to hire Central Lakes College manufacturing students to work part-time. “It takes a lot more coordination on the part of the employer” when it comes to scheduling, Flaws said. But Clow doesn’t want to burn out its full-time workers, who have been putting in plenty of overtime.

The company also is hoping to catch the attention of future employees. It offers regular tours of its facility with Central Lakes College students. It also works with Bridges (which Flaws co-founded) and co-sponsors a “Manufacturing Week” program that introduces young people to career opportunities in manufacturing. Regional manufacturers and their supporters don’t see the battle for employees ebbing anytime soon. In a sense, that’s not a bad thing—it’s a reflection of a strong economy. Still, they know that their future depends upon a skilled workforce. And that’s what manufacturing firms across Central Minnesota are working hard to build.

Minnesota Central Region Manufacturing Highlights

Manufacturing Employment

41,298

Number of Manufacturers

1,156

Share of Regional Employment

TOP INDUSTRIES Food Manufacturing Fabricated Metal

15.3%

$2.1 billion Total manufacturing payroll for the region.

$50,727

Average annual manufacturing wage in the region. That’s 24 percent higher than average annual wages across all industries.

Machinery * Minnesota Department of Employment and Economic Development

34 Initiative Foundation Quarterly ifound.org

WHEN YOU MENTOR, YOU...

START...A RELATIONSHIP INSPIRE...CHANGE CREATE...IMPACT 218-829-4606 All locations Toll-Free at (877) 730-5437 On the web at www.kinshippartners.org

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Through our partnership with the Initiative Foundation, some of the many gifts we can accept are:

Our mission is to support Lake Region Christian School through scholarships and classroom enhancements.

• Cash • Transfer on Death (TOD) • Real Estate Stock Portfolio Designation • Charitable Gift Annuity • Payable on Death (POD) • Charitable Remainder Trust Bank Account • Retirement Plan Assets • Life Insurance • Charitable Lead Trusts For for more information and how you can donate, contact us at the Initiative Foundation at (320) 632-9255 or visit our website at ifound.org/Give-LRCSEF.

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4TH QUARTER 2017

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Meet Our Inaugural 2017

Here’s how you can join and make a difference:

COMMUNITY BUILDERS CIRCLE Members.

INVEST

Your Region. Your Initiative. Your Foundation.

BUSINESSES

• Falcon National Bank

• American Heritage National Bank

• Farmers & Merchants State Bank

• State Bank of Cold Spring

• Stearns Bank NA • Stearns Electric Association Charitable Fund of the Central Minnesota Minnesota Community Foundation • Stern Rubber Company • Arvig Communication Systems • First National Bank North • The Bank of Elk River • Bank of the West • First National Bank of Milaca • Todd-Wadena Electric Cooperative • BankVista • First State Bank of Wyoming • US Bancorp • Benefit Innovations • Frandsen Bank & Trust • Wadena State Bank • BlackRidgeBANK • Granite Equity Partners, LLC • Wells Fargo Bank MN • Brainerd Lakes General Fund of the • Harvest Banks • West Central Telephone Association • LINDAR / Avantech • Widseth Smith Nolting and Assoc., Inc. Brainerd Lakes Area Community • Little Falls Area Chamber of Foundation INDIVIDUALS • Bremer Bank, Brainerd Commerce • John E Babcock • Bremer Bank, Saint Cloud • Long Prairie Packing Company • Rick & Helga Bauerly • Cambridge Medical Center on • Marco Technologies, LLC • Dick & Mimi Bitzan Family Fund • MidMinnesota Federal Credit Union behalf of Allina Health System of Central Minnesota Community • Citizens State Bank of Waverly • Mille Lacs Energy Cooperative Foundation • CliftonLarsonAllen LLP • National Joint Powers Alliance • Lynn & Darren Bushinger • Clow Stamping Company • Neighborhood National Bank • Kathy & Neal Gaalswyk • Connexus Energy • NOR-SON, Inc. • Pat & Carmel Gorham • Consolidated Telecommunications • Park Industries Inc. Fund of the • Don Hickman & Sandra Kaplan Company Central Minnesota Community • Dr. Paul Van Gorp & Roberta Knutson • Crow Wing Power Foundation • Jo & Larry Korf • DeZURIK, Inc. • Peoples Bank of Commerce • Martin & Susan Paradeis • East Central Energy • Pequot Tool & MFG., Inc. • Rita and Everett Sobania • Edelweiss Cabinetry • Pine Country Bank • Charlotte Stephens • Eich Motor Company • Plaza Park Banks • Tim & Carrie Tripp • Essentia Health-St. Joseph’s • Schlagel, Inc. • Andrea Turner • SEH, Inc Foundation • Maggie & Matt Varilek • Sherburne State Banks • Ludmila Voelker & Sentry Banks • Jeff & Laurie Wig

Contribute $1,000 or more per year to the Initiative Foundation’s programs or General Endowment—a forever fund that powers the Foundation’s grants, programs and services.

er

s

rN

atura

l Resources

Model the way for others to support Central Minnesota community-building initiatives throughout the region.

ACKNOWLEDGE Gain special recognition in IQ Magazine, specialty publications, on our website and at Initiative Foundation events.

CONNECT Join us for an annual Community Builders Circle reception where Foundation President Matt Varilek will provide a progress report and listen to your insights.

CELEBRATE Experience the lifetime fulfillment of giving to causes that inspire you. When you give, you’re helping our communities thrive and grow—from our youngest to our most senior members.

it s H el p O r N o n p r o f u

Ca

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f

o

u rO

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(877) 632-9255 | ifound.org 405 First Street SE, Little Falls, MN 56345

oo

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Give today at ifound.org/give To make a pledge, contact a member of our external relations team or call (877) 632-9255.

As a 501(c)(3) nonprofit organization, your Initiative Foundation contribution is tax-deductible to the extent allowed by law. The Foundation owns and manages financial contributions for the benefit of Central Minnesota communities.

36 Initiative Foundation Quarterly ifound.org

Leave a Legacy for Future Generations Donate to help build the new Nisswa Lake Park

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Mail to: Friends of Nisswa Lake Park PO Box 262, Nisswa, MN 56468 To learn more about this project or volunteer, contact us at (218) 961-2629, or visit www.NisswaLakePark.com.

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Co-ops bring a bounty of local food to Central Minnesota tables.

Co-ops bring a bounty of local food to Central Minnesota tables.

By Lynette Lamb | Photography by John Linn

If you crave locally raised heritage pork, honey or organic breads and live near Pequot Lakes, you’re in luck.

Two years ago, when Ideal Green Market Co-op opened in this Central Minnesota town, an important nutritional asset was added to an area where people were previously forced to drive for miles to shop at Costco or Save Foods.

“We’re providing good, fresh food in what is kind of a food desert in resort country,” said Ideal Green Market Co-op staffer Barb Mann, who is also a project manager for the Food Co-op Coalition.

An initiative of the Region Five Development Commission, the coalition promotes the economic and social value of food co-ops, which are owned and democratically operated by its members.

It’s welcome news when you consider that rural food deserts— defined by the United States Department of Agriculture as an area where residents have to travel more than 10 miles to a supermarket or large grocery store—are a serious issue in Greater Minnesota, according to Cheryal Hills, executive director of the Region Five 38 Initiative Foundation Quarterly ifound.org

Development Commission. “Missing meals, pervasive poverty— we see it even in agricultural households,” she said. “A lot of small towns don’t have a grocery store, and getting one is their main priority.”

In fact, many people in Northern and Central Minnesota drive between 25 and 50 miles to find a grocery store. Compounding the problem, according to Hill, is the fact that many “people out there cannot afford a car or can’t drive because of their age.” The rise of the big box store isn’t the only reason for this challenge. Most local grocers who are nearing retirement age don’t have a plan in place to sell or transfer their stores, according to research done by the University of Minnesota Extension’s Regional Sustainable Development Partnerships.

Jo Foust, owner of the Municipal Development Group in New Prague, did several small-town, community-based food analysis and feasibility studies, funded by the Initiative Foundation. From one such study, completed in 2013 in Rockford, she discovered that “the number one requested retail service was a grocery store.”

FRESH LEADERSHIP: Local co-op leaders include (left to right) Doug Larsen; Cathy Hartle; Nancy Uhlenkamp; Jessy McShane; Barb Mann; Barb Ulseman; and Pia Lopez.

3RD QUARTER 2017

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“ About 60 percent of

the money spent in a co-op stays in the community.

SOCIAL IMPACT

While relief in the food desert landscape is crucial to the region, co-ops also bring social interactions to their communities.

“They’re run like nonprofits and are mission-driven, whereas most grocery stores are based purely on financial transactions,” said Hills. Neighbors come together to buy organic and local food, or even to sell art. And food and art bring people together in ways that other commodities do not. “I fear there would be a social impact if the predictions are true and we continue to lose local stores and co-ops,” said Hills.

Mann also endorses the community-building function of food co-ops in the Greater Minnesota towns they serve. “Many people around here say they don’t know their neighbors,” she said of Pequot Lakes, especially if they’re among the many Twin Citians who have retired to the area’s lake cabins. “By shopping at the co-op, they say they’re meeting friends and neighbors and feeling more a part of the community.”

Pequot Lakes’ Ideal Green Market started, as do many small co-ops, with a farmers market that first got fresh, local food to area citizens. Now the co-op, located in a remodeled older building, is up to 245 members and growing.

That’s where Little Falls’ nascent The Purple Carrot Co-op hopes to be in a few years. As of September, manager Susan Prosapio said her co-op had 216 members, with an ultimate goal of 600. They’ve already found “the perfect building in a dream location” in downtown Little Falls, having leased an 8,000-squarefoot brick building (only half of which will be used for the co-op) in the city’s historic district. “We’re all really excited about the

”

prospects this building brings us,” she said.

The Purple Carrot’s timeline isn’t set in stone. “Residents are excited about the co-op, but we’re trying to get them to understand that we can’t open until more of them become owners,” said Prosapio. “And we speak in terms of ownership rather than a oneyear membership,” she adds, explaining that becoming part of a co-op is meant to be a long-term commitment. She hopes that within the year they can start designing the store space and within two years the co-op can open for business.

The Purple Carrot is fortunately situated, given that Sprout Growers & Makers Marketplace, a producers cooperative, is also located in Little Falls. The Initiative Foundation participated in early stage analysis, research and feasibility studies to help Sprout get started. Today the organization buys produce from farmers in an eight-county area, Prosapio explains, and in turn sells it to area restaurants, nursing homes and food co-ops. “They’ll be a major supplier for The Purple Carrot,” said Prosapio, who notes that this partnership will free her from contracting with 100 or more separate local farmers. Sprout also contains a commercial kitchen, which allows local people to bottle their own honeys, salsas, sauces and other homemade products, which they can then sell to the co-op.

Although it’s hard for The Purple Carrot members to wait for that brick and mortar store, the initiative has already taken hold.

“If there’s one thing I’ve learned, it’s that a food co-op exists before the grocery store opens,” said Prosapio. “We are already working in Little Falls to talk about food issues, to hold healthy cooking events and to build community. Even if we never open our grocery store, we believe The Purple Carrot is making a difference right now.”

CONTINUED ON PAGE 42

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A FRESH START CONTINUED FROM PAGE 40

STRONGER TOWNS

Central Minnesota co-ops are being helped along by a new regional initiative called the Food Co-op Coalition, a consortium of six Greater Minnesota co-ops. Four of the co-ops are open and two are in the planning stages. Besides The Purple Carrot and Ideal Green Market, its members are Down Home Foods (Wadena), Crow Wing Food Co-op (Brainerd), Everybody’s Market (Long Prairie), and Minnesota Street Market (St. Joseph).

Spearheaded by the Region Five Development Commission, the Food Co-op Coalition is managed by Mann. Group members began meeting a year ago and have already launched an educational campaign called Why Co-ops? With funding from the National Joint Powers Alliance, the Why Co-ops? campaign is “designed to educate people about the value of becoming a co-op member/ owner,” said Mann.

Among those advantages is the economic value a co-op brings to its community. About 60 percent of the money spent in a co-op stays in the community, said Mann. “One dollar spent in a co-op goes much farther in a community than one dollar spent at a big box store.”

Like Prosapio and Hills, Mann points to the communitybuilding aspects of co-ops—and that means everyone in the community, regardless of buying power. “One of the challenges we face is providing accessibility for every income level,” said Mann.

Food Co-ops Coalition members, she says, make sure that food stamps can be used at each of their stores, and they also are urged to give back to their communities—to a town project, for example, or to a family in need. “When you build community, your town is stronger in the long haul for everyone.”

The Little Grocery That Could How creativity (and a sense of community) has helped one small-town grocer thrive.

The “working man’s brat” definitely gets people talking about Gosch’s grocery in tiny Randall. (population 650). Over Labor Day, the store’s butcher advertised a brat made of “blood, sweat, and tears.” The blood was symbolized by sweet red peppers, while jalapeno peppers took the place of sweat. The tears, naturally, came courtesy of the onions.

“We pride ourselves on our fresh and smoked meats. That’s one thing that sets us apart from the chain stores,” says Denny Mueller, who has owned Gosch’s with his wife, Lori, for 13 years.

Other initiatives that have helped this small-town grocer thrive include working with local farmers to provide fresh tomatoes, sweet corn, pumpkins and other produce; switching to a St. Cloud wholesaler to keep their food more local and fresh; and teaming up with a Kansas State/University of Minnesota rural grocery program to provide nutritional education and other programs.

“You can get a can of soup anyplace,” said Mueller. But you can’t get a working man’s brat at Walmart.

42 Initiative Foundation Quarterly ifound.org

The Why Co-ops? project will attempt to educate Minnesotans with a combination of videos, a web page, brochures, print ads, articles in local newspapers and on radio stations and possibly even billboards and TV advertising.

Other coalition goals are to work toward joint purchasing of both insurance and foods; applying for a U.S. Department of Agriculture grant for board of directors training; and launching a new mobile food truck that could travel to even more remote areas, bringing local foods to nursing homes, daycare centers, manufacturing plants and other smaller population centers.

In the end, advocates hope food co-ops will open and succeed in smaller communities around the state because they are, according to Foust, “one method of filling the gap—increasing people’s healthy food options and decreasing the time they need to pick up necessities.”

The grocery business, Foust points out, is very competitive, and recruiting grocery stores to smaller towns is tough because they have rigid demographic and distance requirements. Food co-ops, on the other hand, are locally owned, so that “the community is investing in filling their own gaps, and they can open a store based on the community’s own needs and desires.”

Back in Little Falls, Susan Prosapio is getting impatient for The Purple Carrot to open its doors. “We want to do this right,” she said.

“We want to give The Purple Carrot and its owners the best shot at being successful and gorgeous when we open. We don’t want to sell our potential short.”

YOUTH SAY YES!

Becker High School Robotics Team

CONTINUED FROM PAGE 28

a community eco fair at their school. They also worked with the Minnesota Department of Transportation to improve safety along Highway 10 and planted $125,000 worth of native prairie grasses and flowers.

Last spring, a group of 12 students and instructors traveled to Rome. They presented their projects to groups of Italian students, scientists, academics and community members, including their work on a high-mileage electric car and a solar boat, and how to organize a local oil-recycling program.

Inevitably, YES! members’ view of the world expanded. “They said, ‘We do a lot of projects at home. Do you do anything like that in Rome?’” explained Bratsch. “They exchanged ideas, were able to learn tips and give advice.”

The environmental focus helps drive the message home that the projects are not just window dressing—they are important gifts that have the long-term potential to improve life in their communities. “I think involvement with YES! helps students feel like they can be a force for positive change, even as middle- or high-school students,” Foster said. “Through this work, they learn that they can make a big impact.

Their voice is heard.”

Bratsch likes to remind his YES! team that the impact of their projects will live on long after they are gone. “The kids realize that we are not just passing through,” he said. “We are all part of this community.

We are part of the world. If they are going to leave something positive behind, YES! is one way they can do that.”

Dream

GEAR HEADS A decade ago, if someone had told Les Engel that robotics teams would eventually among the most popular school-based clubs in the state of Minnesota, he would’ve laughed.

“I’m a metallurgical engineer,” Engel said, “so to me that’s great news.

But it still feels hard to believe that robotics has gotten to be such a popular activity.” In fact, there are now more robotics teams than there are hockey teams in Minnesota.

That robotics has taken off in such a robust way—Minnesota, with the third-highest number of robotics teams in the country, regularly holds high-octane competitions of hundreds of young competitors—is good news to folks like Engel, who make their living building and operating

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begin to see that jobs in their industry are much more than assembly line work.

As president of the Central Minnesota Manufacturing Association (CMMA), Engel is pleased to see any activity that encourages young people to think about careers in his industry: It’s a sector that’s in desperate need of skilled workers. Qualified applicants willing to stay in the region can have their pick of good-paying jobs.

CMMA members regularly provide sponsorship money for robotics teams (robotics kits can cost as much as $5,000). They also mentor students as they prepare for competition and volunteer to judge entries. The Initiative Foundation also supports teams and provides grants for major robotics competitions.

“CMMA is all about trying to develop the workforce,” Engel said. “It’s a big problem, and we’re constantly looking for ways to tackle it.”

These days, Engel and his CMMA colleagues see robotics as one way to get kids to see the exciting challenges that come with manufacturing work. They hope that through popular clubs and high-stakes competitions, young people will

“It’s important to get kids to realize that there really is a future in all of these kinds of jobs,” Engel said. “Robotics allows students to not only learn how to design things in their heads but also to work as a team to build a working robot. It’s amazing. Getting kids excited about these clubs is a great way to introduce them to a whole world of work that’s right under their noses, just waiting for them.”

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Workforce Wonders CONTINUED FROM PAGE 22

a lot of immigrants and refugees coming into our community in their late teens and they simply don’t have enough years left to graduate before they turn 21, and they don’t always have the language skills to do that high school level work,” explained Laurie Leitch, the district’s Adult High School Diploma Coordinator. “These students were so disappointed to see their educations come to an end, at the same time, they really wanted the opportunity to work and develop the right skills for employment.”

Key partners including Tammy Biery, executive director of Career Solutions (formerly Stearns-Benton Employment & Training Council) and Jama Alimad, founder of the Central Minnesota Community Empowerment Organization, quickly flew into action, securing the Coleman Co. plant in Sauk Rapids as the classroom partner for an on-site adult education and apprenticeship program. Funding was also provided by the Otto Bremer Trust and the Initiative Foundation. The five-week program they designed made it possible for 14 young men and women to split their time between on-the-job training with Coleman’s own staff, while making progress toward their diplomas in a classroom near the shop floor. Adult educator Mandi Schneider even made her literacy lesson plans using the Coleman company’s own employee handbooks and other on-site materials, giving students a real-life connection to relevant job skills.

“I was blown away by how self-motivated these students were,” said Schneider, noting that four students jumped up more than two grade levels in math, while three more made enough progress to enroll in the Adult Basic Education diploma and credit recovery programs this fall. “They were just laser-focused on making the most of this opportunity.”

Though the pilot program was pulled together in just six weeks, the positive results have attracted attention from other employers around the region interested in building stronger connections with St. Cloud’s immigrant community. “All of the partners in the program said the same thing—the caliber of these students, their amazing resilience and interest in learning was amazing,” said Leitch. “At the start, Coleman told us if they could get three or four quality workers out of the program, they’d be thrilled.” In fact, nine of the CareerOne-Coleman trainees have become eligible to join the company’s temporary hiring pool.

“I do believe apprenticeships can help to fill the gap in less time and with less money,” said Alimad. “We have so many companies that need the workforce, and strong young people who need the work, that we just need to make the connection. That’s going to be the key to everything.”

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MAKE A BETTER FIRST IMPRESSION ”A lot of companies are just starting to realize that their onboarding process leaves a lot of room for improvement,” said Luke Greiner, regional analyst for the Department of Employment and Economic Development. Start with your website: Does it work well on mobile devices, where a majority of job seekers will concentrate their search? Do the links lead to the right information? Can you add a page with job seeker FAQs that can encourage great applicants to apply, instead of just discouraging phone calls?

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4TH QUARTER 2017

47

philanthropy

’Tis The Season There are many ways to do good for your favorite causes—as well as yourself—through year-end giving.

By John Reinan

Minnesotans are a giving bunch. Multiple studies in recent years show that we consistently rank among the Top 10 most generous states in charitable donations.

Yet many of us may be overlooking opportunities to do good for ourselves while doing good for others. Financial experts say there are a number of strategies available to maximize the giving experience while not affecting the impact of the gift.

The year’s end is a perfect time to make a gift that could help brighten your outlook when tax time rolls around. And with the new year approaching, it’s also an opportunity to get a head start on financial planning that could make next year’s giving even smarter.

“Year-end giving is important for procrastinators, which is most of us,” said Brad Hanson, a trust and real estate attorney at Quinlivan & Hughes in St. Cloud. “But you don’t have to do it at year-end. My most proactive clients are doing it in January.”

Consider Your IRA

One often-overlooked method is to give charities money from

48 Initiative Foundation Quarterly ifound.org

a traditional IRA. Federal tax rules require IRA holders to begin taking money from their accounts when they reach age 70½—no ifs, ands or buts. It’s called a Required Minimum Distribution (RMD).

Those same rules, however, allow the owner of an IRA to give up to $100,000 a year from their IRA to a qualified charity, income tax-free.

“It’s the only way you can take money out of an IRA without reporting it as income,” said Michael Craig, a certified financial planner with Ameriprise Financial Services in Wadena. “The financial planning community has been slow to pick up on this one.”

The key, Craig said, is to have the money sent directly from your IRA to the charity receiving it. If you have the money sent to you, and then pass it on as a gift, you’ll have to report it as taxable income.

“For a lot of people with other income, they view RMDs as a nuisance,” Craig said. “So this is a real win-win. I would say that for anyone who is making regular charitable contributions, when they turn 70½, they should make all their contributions from an IRA if they have the money.”

“ If you plan proactively, you can get more dollars to the people and organizations you want to get them.”

Give Stocks and Bonds

Another way to get more bang for your charitable buck is to give appreciated gifts such as stocks and bonds. If you own stocks, bonds or mutual funds—particularly if you’ve held them a long time—you can give them to a charity and cut your tax bill significantly. “You should receive the full value of the gift as an itemized deduction (within certain limitations), and you won’t be taxed on the gain,” said Craig. “The charity will sell the securities and declare the gain, but they are tax exempt.”

“It’s a pretty effective gift,” Hanson said. “If someone gives $1,000 worth of stock that they bought for $100, they get the $1,000 tax deduction for the gift, but they don’t have to pay capital gains tax on the $900 increase.”

Don’t Give Grandma’s Dining Room Table

If you’re thinking a charity might like getting greatgrandmother’s antique furniture—think again. Many financial advisers steer their clients away from donating non-financial assets, which can be difficult to value.

“There are a lot of land mines in that area,” cautioned Nolan Aho, a certified public accountant and principal at CliftonLarsonAllen in Waite Park.

Donated items require a professional appraisal, “and there are very tedious rules on the type of appraisal that will work,” Aho said.

“Even very reputable [appraisal] firms have had insufficient reports that have gotten their clients into hot water.”

If you do have non-cash items that are more readily valued— such as jewelry—you should check in advance with the planned recipient, said Lori Lewandowski, a fiduciary advisory specialist with Wells Fargo Wealth Management Group in St. Cloud.

“Always make sure you talk to the development officer at the recipient to make sure it’s in line with their giving,” she said.

Set Up a Donor-Advised Fund

Lewandowski said donor-advised funds are a good way for givers to stretch their gifts over a longer period. Many foundations, including the Initiative Foundation, will help givers set up a donoradvised fund, in which the foundation holds the money, but the giver provides advice on where it goes.

“A lot of people use a donor-advised fund to teach their children and grandchildren about philanthropy,” she said. “It’s like creating your own foundation without all the tax and administrative responsibilities.”

Another advantage of donor-advised funds: You can deduct the gift in the year you make it, but take as long as you wish to disburse the money.

Cash Gifts

individual, tax-free. A couple can give $28,000. In 2018, that limit will increase to $15,000 for an individual and $30,000 for a couple.

Prioritize Planning

Planning is the key to taking advantage of laws on charitable giving, advisers say. Tax laws and regulations can be complicated, even for professionals who deal with them constantly. And a potential overhaul of the nation’s tax system could make things even more complicated.

Bottom line: “If you plan proactively, you can get more dollars to the people and organizations you want to get them,” Aho said.

Donors shouldn’t feel guilty about taking advantage of financial giving strategies, Hanson said. If your heart is already in the right place, there’s no harm in using your head.

“People give because they want to help an organization,” he said.

“They’re going to make a charitable gift first and foremost because that organization is important to them, and tax advantages are just an extra benefit.”

In this season, when family and community are top of mind, it’s a great time to plan a gift that will help the people and causes you most care about.

“The holidays are a time when families can engage together to support a cause in their community,” said Carrie Tripp, vice president for external relations at the Initiative Foundation. “It is so important for our region and our country that the spirit of generosity is passed on to the next generation.”

GETTING STARTED

Financial planners recommend these simple steps.

Donate from your traditional IRA. If you’re 70½ or older, you can make a gift of up to $100,000 to a qualified charity directly from your IRA. Gift appreciated assets. If you have stocks, bonds or mutual funds that you’ve held more than a year, you can save on capital-gains taxes by giving the appreciated assets to charity.

Get advice from an expert. Tax laws are complicated and change often. You’ll help yourself and your charity of choice by consulting with an attorney or a financial planner as you create your giving plan.

For those who want to give directly to their children and grandchildren, the law allows you to give up to $14,000 to any

4TH QUARTER 2017

49

home made

Milk & Honey Ciders St. Joseph, Minn.

By Maria Surma Manka

“Sometimes we have to tell people it’s not champagne,” said Peter Gillitzer of Milk & Honey Ciders. He’s not joking. Gillitzer and his business co-owners Adam Theis and Aaron Klocker—who’ve been friends since elementary school—knew that educating customers would be a fact of life for their Central Minnesota business. The three believed that cider was underrated and underutilized and launched Milk & Honey Ciders to bring back a historically significant beverage.

“American farmers had orchards and would make and drink cider,” said Gillitzer, who handles the business side of the operation. “People don’t know about it anymore, but it’s really a part of this country’s history and roots.”

Indeed, the Mayflower reportedly had provisions for cider making, and John Adams and Thomas Jefferson regularly drank the beverage. (Adams is rumored to have had a tankard of cider each morning to help settle his stomach.) But as waves of new immigrants from Central and Eastern Europe arrived with a penchant for beer, followed by the heavy hammer of Prohibition, cider manufacturing in the United States largely collapsed. — until now.

We pressed Gillitzer to tell us more.

•B everage Backgrounds While the owners held down corporate jobs in the Twin Cities before they started Milk & Honey, none were total newcomers to beverage making: Gillitzer has a background in agriculture and Theis worked in beverage production. Klocker was in aviation engineering, but was a cider enthusiast and had taken classes where he learned how to make cider and perry, which is a drink made from fermented pears.

• I nspired Branding The name “Milk & Honey” was chosen to evoke unattainable perfection. In mythology, apples, milk and honey symbolize the easy life because they require no human intervention; it’s instant food straight from the tree, cow or hive.

•L ocally Grown The St. Joseph orchard produces apples that are blended with other varieties from Minnesota, Michigan, New Hampshire and Washington.

50 Initiative Foundation Quarterly ifound.org

•B ubble Up Cider is essentially fermented apple juice.

In the fall, the apples are picked, pressed, and yeast is added to eat the sugars (which creates a byproduct of CO2 and alcohol). The cider is ready for market by the following spring or early summer.

•G oing Dark Cider is aged in a large, dark room kept at 40 degrees. Depending on the type of cider you are producing, it’s stored in stainless steel or poly tanks, bottles, kegs, or oak barrels that were formerly used to age whiskey or bourbon.

•P ress On Apples are pressed with nearly the same technology that’s been around for generations: They are ground, placed on material similar to cheesecloth, and the juice is pushed through the cloth using a big hydraulic press.

• Apple Geeks A great cider apple has a good body and tannin structure. It’s also assessed according to its aroma, sugar content, pressability, and how well it blends with other apples. “Our whole team is enthusiastic about cider and can talk about apple varieties, cider culture and history,” said Gillitzer. Favorite varieties include, but aren’t limited to, Newtown Pippin, Winesap, Chestnut and Northern Spy. • Terms and Conditions The Milk & Honey team avoids the term “hard cider,” because they don’t want customers to confuse it with the unfiltered apple juice you buy at grocery stores. “What we make is cider; it’s what the rest of the world calls it and we want to stick with that. We’re proud to evangelize it.”

•S ocial Setting The tasting room in St. Joseph has been a hit with the local community. It features live music and food trucks in the summer, and visitors (including pets and kids) are encouraged to explore the 11 acres.

•C rowd Pleaser Of the four Milk & Honey ciders currently in production, Heirloom is a consumer favorite.

It’s a middle-of-the-road choice between the sweeter, mass-market American cider and the less-sweet version that’s usually sold in Europe.

•G rowth Strategy With financing through the Initiative Foundation’s loan programs, Milk & Honey Ciders purchased additional tanks and bottling machines to expand operations and introduce more blends.

4TH QUARTER 2017

51

where’s IQ?

THINK YOU KNOW? Send your best guess to IQ@ifound.org

by Jan. 15, 2018.

Three winners will be chosen, at random, to receive a $25 credit to apply toward their favorite Initiative Foundationhosted Partner Fund.

HINT: Originally buit in 1872, this chapel’s given name means “Star of the Sea.” Congratulations to everyone who correctly recognized Charles A. Lindbergh’s 1959 Volkswagen Beetle on display at the Charles A. Lindbergh Historic Site in Little Falls. David Jeremiason, Mike Palmer and Jeff Hiebert were the lucky 3rd Quarter 2017 winners of our “Where’s IQ” contest.

The show thatâ&#x20AC;&#x2122;s revitalizing Main Streets, one small business at a time.

Season 2 now streaming at smallbusinessrevolution.org

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